Latest data from Savills shows that residential stock value in London dropped by 1.5 per cent amid a nationwide increase of £190bn, pushing the total figure to a record £7.3tn.
Across the UK, price appreciation added a total of £138bn, equivalent to growth of £4,800 per home over the year.
Despite the market growing just 2.7 per cent in 2018, the total value of the market now stands at a record high, according to Savills.
The highest gains in value by tenure was the private rented sector, which saw its value rise 4.1 per cent, surpassing the £1.5tn mark. Owner occupied mortgaged properties grew at the slowest rate – 0.6 per cent – holding at the £2.2tn mark.
The firm reports that London’s residential stock recorded a 1.5 per cent decline, while other regions saw gains.
The highest of these was in Wales, where values increased by 6.3 per cent, followed by the East Midlands, which saw a 6.1 per cent rise in value. Properties in the West Midlands increased in value by an average of 6.2 per cent.
However, London still accounts for almost a quarter of UK housing value. The capital’s housing stock is worth £1.77tn, over four times the combined value of Birmingham, Manchester, Edinburgh, Glasgow, Cardiff, Bristol, Liverpool, and Sheffield.
The report also states that the average deposit for a first-time buyer last year was £26,150, which is 70 per cent higher than the average deposit in 2008.
Savills residential research analyst Lawrence Bowles says: “Our analysis demonstrates the scale of the housing market and underlines the importance of housing to the economies of London and the UK as a whole, both as an asset class and store of private wealth.
“Once again, we see that wealth concentrated in ever fewer, older hands, to the extent that the UK’s over 50s hold a quarter of all UK homeowner equity, while the over 65s in London and the South of England alone account for over three-quarters of the total.
“At the same time, as affordability becomes more stretched, younger households are having to put off buying their first home until later in life. It’s great that we’re seeing more housing delivery, but development will have to make up a much higher proportion of new housing value if we are to come anywhere near building the homes this country needs.”